By all means, take a good hard look at the strategic business units and how they impact your business as a whole.
It’s called “strategic divestiture.” That’s what it means. A company can choose to either “sell” or “divest” a company’s strategic business unit. If the business unit is in a different country, like the US, the company has to sell it. The US company has to divest the business unit. If the business unit is in another part of the country, like Germany, the company can choose to divest it.
The divestiture or sale is the strategic business unit moving away from the company. The company then moves into the strategic business unit, and the strategic business unit moves out of the company. In this way the company retains all of the business units that were created as part of the same strategic plan.
The divestiture of a business unit is called a “strategic divestiture.” But there are some things that really need to happen when a company divests a strategic business unit, regardless of whether or not that unit is actually “strategic” to the company. First, the company must notify all of its employees of the strategic divestiture. Second, the company must transfer the strategic business unit to another company. Third, the company must change its headquarters.
I’m going to focus specifically on the third part of this question because that’s the most important. A company must change its headquarters if its strategic business unit is to have any chance of surviving. A company’s headquarters is the place where the company’s senior executives are located. And if the company’s strategic business unit becomes defunct, the headquarters where that unit is located will likely disappear. At the very least, the headquarters staff will likely have to relocate.
I think most companies would prefer not to lose their headquarters. They would also prefer to have the headquarters staff relocate to a less expensive community. However, a company must decide if its strategic business unit is worth the expense. If its employees can’t afford to move to a less expensive community, that leaves only the executives to remain. If the company does not want to incur the expense of a relocation, then it would be better to decommission the strategic business unit altogether.
So, when a company decides to divest a strategic business unit, it has three choices. They can either move all of their employees to a less expensive community, or they can decommission their strategic business unit. The decision will obviously be costly and is usually made by a different division than the one that was selling the strategic business unit as a whole.
Decommissioning a strategic business unit is a very expensive business and also a risky business. One reason that it’s a very risky business is because the company is going to have to move a large number of employees and a lot of assets as well.
I’ve heard a lot of arguments for and against decommissioning a strategic business unit. The thing is, the reason that people are so adamant about decommissioning a strategic business unit is because they know they have to. If a company can’t find the money to decommission a strategic business unit, they can’t afford to hire people and assets to run the business. Now, there are other reasons why companies do decommission strategic business units: they’ve run out of money.
and because many companies don’t have the money to do it. But that doesn’t mean that they shouldn’t do it. Many companies that just get rid of the business units they’re not planning to keep decide to do so because they think that they can hire a lot more people and assets.